Chinese gene tech equipment maker raises $200m

Founded in 2016 as a subsidiary of Shenzhen-based BGI Group, the world's largest genetics research center, the company produces sequencing devices as well as sample preparation and ultrasonic systems, modular workstations and laboratory solutions. MGI Tech claims to have sold more than 1,100 sequencers in 16 countries and regions, serving over 300 institutions.

The new funding will go towards the development of new types of sequencers and expand coverage into more gene technology verticals, according to a statement.

Demand for MGI Tech's products is in part driven by specialist genetic testing businesses. These tests are used to detect diseases at an early stage, assess the applicability of drugs, and offer snapshots of an individual’s health, lifestyle, and personality. Companies also build biobanks of blood and DNA samples, which form the basis of studies on how genes function. This is information is used by pharmaceutical companies in drug development.

BGI and Berry Genomics are the dominant force in China for the most common genetic test, which establishes whether a fetus is afflicted with a disease, working in partnership with thousands of women and children’s hospitals. There are also start-ups that target mass-market consumers.

WuXi NextCode, which falls into the latter category, has received substantial private funding. Other PE and VC-backed sequencing and testing businesses include 23Mofang, Prenetics, Annoroad, and Burning Rock.

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• Topics
• Greater China
• Early-stage
• Healthcare
• Expansion
• Green Pine Capital Partners
• Goldstone Investment
• healthcare